There are two main types of real estate tokens: equity tokens and debt tokens.
Equity tokens represent ownership in a real estate asset. These tokens give investors a proportional share of the property's value, rental income, and potential capital appreciation.
Debt tokens represent debt obligations secured by real estate. These tokens are similar to bonds, and they give investors the right to receive interest payments and the principal amount of the loan at maturity.
Real estate tokens can also be classified according to the type of real estate asset that they represent. For example, there are tokens that represent residential real estate, commercial real estate, and even trophy properties.
Additionally, real estate tokens can be classified according to their liquidity. Some tokens are highly liquid and can be traded on exchanges, while others are illiquid and can only be traded on private markets.
Finally, real estate tokens can be classified according to their security features. Some tokens are security tokens, which means that they are regulated by securities laws. Other tokens are utility tokens, which means that they are not regulated by securities laws.
Security tokens typically represent ownership in a real estate asset, while utility tokens typically represent access to a real estate asset or service. For example, a utility token might give investors the right to use a co-working space or to receive a discount on real estate services.